Vodafone launches cheapie handsets for developing markets

Stuart Corner
Tuesday, 22 May 2007 12:40

Business IT - Technology

Vodafone has introduced two ultra-low-cost handsets developed by Chinese company ZTE that it will sell under its own brand in emerging markets.

The 2G GSM Vodafone 125 and Vodafone 225 handsets are likely to retail at $US25-$US45 depending on the specific model and the local market conditions. They are the first to be manufactured for Vodafone by ZTE following a global handset procurement agreement signed between the two companies in December 2006. The handsets are almost identical in functionality however the Vodafone 125 has a black and white screen and the Vodafone 225 has a colour screen. Features, design and functionality were specified by Vodafone.

"The Vodafone 125 and Vodafone 225 are the first of a range of ultra-low cost handsets which will be manufactured exclusively for Vodafone and its affiliates by ZTE Corporation," said Jens Schulte-Bockum, Vodafone's global director of terminals. Vodafone Egypt, Vodafone Romania and Vodacom (South Africa) will be the first countries to get the new handsets, in the next few weeks.

In many market the cost of purchasing a mobile handset can be one of the main barriers to accessing mobile services. And Vodafone says that, in Kenya and Egypt, where it has introduced mobile financial remittance services, "mobile technology has been shown to be able to provide secure and socially beneficial services beyond simple voice and data services to those who have not access to a bank account."

Increased penetration of mobile phones in developing countries has the potential to significantly transform their economies. A study in rural India undertaken by Nokia late last year found that mobile communications was spawning a wave of local entrepreneurs and creating greater access to social services. According to Nokia, the research identified seven major service sectors including transport, finance and healthcare that could be radically transformed through mobile technologies.

Separate from the Vodafone initiative, the GSM Association earlier this year announced Korean manufacturer LG as the winner of its competition to produce a low cost 3G handset for developing countries. LG's KU250, was selected by 12 operators that jointly drew up specs for a low-cost 3G phone. Motorola - winner of a similar contest for 2G handsets in 2005 - was announced as winner of the 'Best Ultra Low Cost Handset' award at 3GSM World Congress in February with its 2G Motofone F3.